Metric Systems Corp. v. United States

42 Cont. Cas. Fed. 77,400, 42 Fed. Cl. 306, 1998 U.S. Claims LEXIS 267, 1998 WL 800042
CourtUnited States Court of Federal Claims
DecidedNovember 13, 1998
DocketNo. 98-616C
StatusPublished
Cited by16 cases

This text of 42 Cont. Cas. Fed. 77,400 (Metric Systems Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metric Systems Corp. v. United States, 42 Cont. Cas. Fed. 77,400, 42 Fed. Cl. 306, 1998 U.S. Claims LEXIS 267, 1998 WL 800042 (uscfc 1998).

Opinion

OPINION

FUTEY, Judge.

This post-award bid protest ease is presently before the court on the parties’ cross-motions for summary judgment on the administrative record. Plaintiff argues that defendant’s decision to award a contract to intervenor, Harris Corporation (Harris), on a sole-source basis was arbitrary, capricious, and otherwise not in accordance with law. Defendant and Harris counter that the administrative record adequately explains defendant’s determination to award the subject sole-source contract to Harris.

Factual Background

The Mini-MUTES is a radar simulator which emits electronic warfare threats currently utilized on Air Force training ranges.1 Specifically, the system replicates threats pilots might be expected to face in combat, such as surface-to-air missiles. Each system consists of one Master Control Group (MCG) and up to five Remote Emitter Units (REU). The MCG controls the REUs, which emit electronic signals that simulate different threat signal combinations. The Mini-MUTES was initially produced by General Dynamics Corporation pursuant to a 1986 contract. Harris was awarded a competitive follow-on production contract in 1990.

The Mini-MUTES was deemed obsolete in 1993 because the central processing units (CPUs) were outdated and its bus, which is the electronic pathway connecting the MCG with the REUs, was inadequate. Defendant did not upgrade the system at that time, however, as it lacked the necessary funds.

Beginning in 1995, and continuing through mid-1997, defendant conducted advanced threat feasibility studies, explored joint initiatives, evaluated existing equipment and systems, and conducted informal market surveys within the industry. As a result of this effort, defendant concluded that a modification of the Mini-MUTES to add advanced threat capabilities would be more prudent than purchasing and deploying new threat simulators.2 In this regard, defendant determined there was “a need for a reactive threat capability enhancement to provide feedback to aircrews to include[:] electronic counter measures, expendables, maneuvers, and terrain masking.”3 Significantly, defendant identified the need to improve Mini-MUTES as “urgent,” and established September 2001 as the deadline for fielding the new system.4 Moreover, defendant found that without modification, “the possibility exists that the first time ... aircrews will be exposed to advanced threats will be in actual combat versus on a training range.”5

In January 1997, prior to defendant’s determination to modify Mini-MUTES, the Defense Advanced Research Projects Agency (DARPA) announced its Dual Use Applications Program for fiscal year (FY) 1997. Under the program’s Commercial Operation and Support Savings Initiative (COSSI), contractors were asked to propose methods of inserting commercial technology into fielded military systems. Harris responded to the COSSI solicitation by proposing to replace [308]*308the existing obsolete CPU and bus in the Mini-MUTES with a commercial open architecture processor and bus system.

On May 5, 1997, defendant announced its intention to negotiate with Harris a COSSI grant. These negotiations resulted in a COSSI agreement between Harris and defendant, wherein Harris agreed to perform a fourteen-month research project funded by DARPA.6 Pursuant to the terms of the COSSI agreement, entered on September 11, 1997, Harris agreed to contribute $603,267, and defendant agreed to contribute $1,485,-190 for the successful development of a working commercial off-the-shelf replacement for the current processor. In addition, the agreement provided that, although defendant retained certain “march-in rights,”7 Harris retained “the entire right, title, and interest throughout the world to each subject invention” developed under the COSSI agreement.8

Even before Harris and defendant entered into the COSSI agreement, on May 16,1997, defendant entered into a Supplemental Agreement with Harris, modifying its existing follow-on production contract for the original Mini-MUTES. This modification, entitled “Advanced Change Study Notice” (ACSN) sought to demonstrate improved tracking capabilities of the Mini-MUTES. In particular, Harris was to “perform a demonstration of the proof-of-concept system in order to verify that a tracking upgrade field kit can be implemented on the Mini-MUTES and track an aircraft traveling at 540 [knots true air speed] in a tangential fly-by.”9

On July 2, 1997, defendant’s Air Force Aeronautical Systems Center (ASC) issued a Commerce Business Daily (CBD) announcement that it was going to award the advanced threat modification contract to Harris on a sole-source basis. Plaintiff objected. The parties met in late August 1997 and discussed the possibility that competition for the Mini-MUTES modification effort was available. Sometime after this meeting, program responsibility was transferred from ASC to defendant’s Air Force Sacramento Air Logistics Center (SM-ALC). Nevertheless, on October 15, 1997, ASC informed plaintiff that the CBD announcement was “no longer valid and [was] considered withdrawn.” 10 Further, plaintiff was informed that “[i]n the event a revised Mini-MUTES requirement is identified, funded and forwarded to this office for action, it will be processed in accordance with Federal Acquisition Regulations Part 5, as supplemented.” 11

On January 18, 1998, SM-ALC, the entity to which program responsibility was transferred, prepared a justification and approval (J & A) for the sole-source award of the advanced threat upgrade contract to Harris. As justification for awarding the contract to Harris, the J & A identified the COSSI agreement, the ACSN, and Harris’ respective proprietary data in those agreements as compelling reasons for the sole-source award. Specifically, the J & A noted the unavailability of data with respect to the agreements and found that “[a] full and open competition will delay the [research and development] phase an estimated two years or more and result in additional costs of $2.5 million to duplicate the on-going development efforts that Harris Corporation is currently working under separate contracts.”12 The J & A further identified logistics considerations that would prevent another contractor from completing the on-going development efforts.

[309]*309After reviewing these circumstances, the J & A expounded on the rationale for awarding the advanced threat upgrade to Harris on a sole-source basis. In support of this decision, the J & A states, in pertinent part:

Harris Corporation is the only known source capable of satisfying all the program requirements at this time. Harris Corporation is the current Mini-MUTES manufacturer and has the necessary skills, equipment, and capabilities in-place to accomplish the required system modifications. Harris Corporation possesses a unique knowledge of the existing system. They [sic] have extensive experience in developing and producing modifications for Mini-MUTES. The required Mini-MUTES modifications must not only integrate with existing Mini-MUTES hardware and software, but interface with the on-going computer replacement and tracking upgrade efforts currently on-contract with Harris Corporation.

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Cite This Page — Counsel Stack

Bluebook (online)
42 Cont. Cas. Fed. 77,400, 42 Fed. Cl. 306, 1998 U.S. Claims LEXIS 267, 1998 WL 800042, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metric-systems-corp-v-united-states-uscfc-1998.